The holidays are just around the corner, which means that between presents, parties and more, you are likely either excited and ready or scared about going broke. With that in mind, it’s important to learn how to protect your financial future with holiday spending tips from your trusted CPA in Sacramento, CA:
- Create a budget: Without a doubt, you should be creating budgets every month, including a budget for groceries, gas, entertainment and things you want. The same principles applies to buying gifts for friends and family to celebrate the holidays, but oftentimes we find ourselves going a bit overboard because we don’t want to disappoint. So, if you haven’t done so already, now is the time to set a spending budget, which can either be per person or overall. Do your best to stick to your budget, or even come out having spent less.
- Give handmade gifts: Let’s say you’re creating a holiday spending budget, only to realize that you won’t have the cash to pay off your credit card. Whether money is tight or you don’t want to spend a whole lot, giving handmade gifts is a good option. Give framed photos, make tree ornaments, put your baking skills to work and bake up a few goodies to wrap up for others or simply give out handmade cards filled with holiday wishes.
- Plan party expenses: Whether throwing a party for family and friends or your coworkers at the office, you should budget out your holiday parties. List out the food, drinks, decorations and party favors, as well as the cost of renting a venue, if applicable. Request an early enough RSVP to ensure you budget correctly.
- Don’t assume your bonus: Since holiday work bonuses are typically not given until the end of the year, don’t assume that the dollar amount will be as big as in years past. Assuming can lead to overspending, and this can leave you less cheery come the New Year. Therefore, a good way to go would be to budget for the holidays based on what you can afford now, without your bonus.
- Make a gift list: Write out lists to avoid spending more because of last minute expenses. For presents, write down everyone’s name you want to buy a gift for, with the dollar amount you can comfortably spend on each recipient. You should also create a list for recipients of personal handmade gifts so you don’t forget to make them.
- Keep receipts: What you can do to help your CPA in Sacramento, CA help you come tax time—or when going over your individual or business finances—is to hang onto all of your receipts from the holidays. Start by placing all of your gift and expense receipts in an envelope labeled “personal holiday expenses.” Do the same for holiday expenses that pertain to your business. Also, check that a purchase can be written off, if that’s the only way you can get it.
If you need a CPA in Sacramento, CA to help you out this holiday season and year round, don’t hesitate to give us a call at Yoder & Co., CPA. We’re here for you!